NBCU owns cable channels including USA Network, CNBC, Syfy and Bravo. Analysts say that advertisers have committed less money to cable networks than expected in the industry's advance selling period, called the "upfront."

On Comcast's Q2 earnings call with analysts, NBCU CEO Steve Burke said that his firm is gaining ground on rivals, despite a drop in upfront ad commitments, because of better ratings at NBC.

"We sold all our broadcast and cable assets together in the upfront, and I think that was a major reason why we had such a successful upfront relative to the rest of the industry," he said. "The year is going to play itself out, and we'll see where we end up. There's some shift to digital, but we don't think that's the majority factor here."

Comcast has stepped up investments in NBCU's theme parks while increasing film and TV production. On the cable TV side, it has hiked capital spending to deploy next-generation "X1" set-top boxes featuring Internet and cloud technology.

With higher spending, Comcast's Q2 free cash flow tumbled 41% to $1.16 billion. The company bought back $750 million of its shares.

NBCU owns cable channels including USA Network, CNBC, Syfy and Bravo. Analysts say that advertisers have committed less money to cable networks than expected in the industry's advance selling period, called the "upfront."

On Comcast's Q2 earnings call with analysts, NBCU CEO Steve Burke said that his firm is gaining ground on rivals, despite a drop in upfront ad commitments, because of better ratings at NBC.

"We sold all our broadcast and cable assets together in the upfront, and I think that was a major reason why we had such a successful upfront relative to the rest of the industry," he said. "The year is going to play itself out, and we'll see where we end up. There's some shift to digital, but we don't think that's the majority factor here."

Comcast has stepped up investments in NBCU's theme parks while increasing film and TV production. On the cable TV side, it has hiked capital spending to deploy next-generation "X1" set-top boxes featuring Internet and cloud technology.

With higher spending, Comcast's Q2 free cash flow tumbled 41% to $1.16 billion. The company bought back $750 million of its shares.

Comcast is seeking regulatory approval to buy Time Warner Cable (NYSE:TWC). It would combine the nation's two biggest cable firms. Analysts expect federal regulators' review of the deal to extend into 2015. The market impact of AT&T 's (NYSE:T) proposed acquisition of satellite TV broadcaster DirecTV Group (NASDAQ:DTV) is also being studied.

While Comcast sees a future as both producer and distributor, Verizon Communications (NYSE:VZ) this year bet big on wireless services, buying out Vodafone Group's (NASDAQ:VOD) 45% stake in their Verizon Wireless U.S. joint venture for $130 billion.

Some analysts question the purchase, as competition intensifies in a maturing U.S. wireless market.

"The industry may be trading tit-for-tat pricing blows, but Verizon is mostly sticking to its premium positioning," Moffett said in a note.

Rare Wireline Sales Hike

Verizon said its Q2 revenue rose 5.7% to $31.48 billion. Wireless service sales rose 5.9% to $18.1 billion. Wireline revenue increased for the first time in five years, albeit only 0.3% to $9.76 billion.

Verizon said that EPS rose 25% to 91 cents, adjusted for nonrecurring gains, edging views by a penny.

Verizon had already said it added more than 1.4 million postpaid subscribers in Q2, up from 941,000 in Q2 2013 and 539,000 in Q1. On Tuesday, the company said 1.15 million of the additions were tablet users, while smartphone users accounted for more than 300,000.

Consumers can add tablets to existing accounts through data-sharing plans for $10 monthly, so they produce less revenue for wireless firms than smartphone customers. Still, analysts say that tablet users are profitable.

"While 4G smartphones provide the highest value, tablets provided very good incremental value through increased data consumption," said Verizon CFO Fran Shammo on the firm's earnings call. "Tablets also have a lower cost subsidy than smartphones. We see tablets as a highly profitable growth opportunity with significant headroom in terms of further penetration."

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